Leonard “Lenny” LaRocca named KPMG US Automotive Industry Leader

Oct. 31 – KPMG partner Lenny LaRocca has been named US Automotive Industry Leader, effective November 1. LaRocca succeeds Gary Silberg who is retiring after more than 25 years with KPMG, including five years as KPMG Global Head of Automotive.

LaRocca brings more than 20 years of automotive experience and has served as KPMG Global Head of Deal Advisory and Strategy for Automotive for the last four years.

“I am thrilled to have Lenny as a member of our IM leadership team.  His global experience helps him have a strong pulse on where the automotive market is headed, and that’s key to our industrial manufacturing client service strategy,” says Claudia Saran, US Industrial Manufacturing Sector (IM) Leader. The IM sector comprises the automotive, diversified industrials and aerospace and defense segments.

“I look forward to leading our outstanding team of auto industry specialists as we help our clients navigate a massive disruption and the transition underway to a mosaic of powertrains led by EVs,” says LaRocca.

He also offered these perspectives on several key auto industry trends.

On the impact of interest rate cuts on the auto industry:
"Lower interest rates may lead to what some see as much-needed consolidation, alliances and joint ventures in the auto industry, especially given all the technology and spending required to power the industry into the future. The supplier base is one area ripe for consolidation and lower interest rates may finally present the opportunity."

On the financial pressures of today’s EV market:
“The current mismatch between the auto industry’s EV investment and consumer demand will continue to drive companies across the EV development and production chain to find a more profitable road in this space. If the EV investment and demand gap continues in the coming years, there’s greater likelihood of consolidation among some companies in the EV ecosystem.”

On the potential shift in dominant EV players:
"Watch the trend around these traditional OEMs pulling back on EV investment while newer companies invest in advanced technology as this could lead to a changing of the guard. Ultimately, the big EV players might not be the same companies that dominate gas-powered vehicles or hybrids today.”

On the EV transition and the charging network:
"EVs eventually will grab a big portion of the market, but to increase adoption, there must be fundamental changes in the charging infrastructure in the United States. It's the industry's responsibility to lead this effort because they must own the compatibility, accessibility and reliability. We may see the tipping point in the charging network around 2030 as the infrastructure and vehicle technology advance enough to make long-distance EV trips a consistently good consumer experience.”

On the challenges facing the aftermarket:
"As cars become smarter with more software and technical capability, the aftermarket faces a technical gap. It's becoming harder for the 'do it yourselfers' to work on their cars, impacting that segment."

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